3 Indian Nationals Ordered To Pay N98Million, $325,000 To 87-year-old Nigerian Businessman

A Federal High Court in Lagos has issued a verdict ordering three Indian nationals to pay a total sum of N98.2 million and an additional $325,000.00 to 87-year-old businessman Isaac Oluwole Oginni for unlawfully removing him as a director from three companies he founded.

The companies at the center of the legal action, filed on November 19, 2021, are Bolawole Enterprises Nigeria Limited, Lesag Nigeria Limited, and Intermanagement Nigeria Limited.

In his judgment, Justice Ayokunle Faji declared the actions of the three Indians as a violation of Oginni's right to a fair hearing and the provisions outlined in section 262 of the Companies and Allied Matters Act (CAMA). He affirmed Oginni's continued status as director of his three companies.

The Indians affected by Justice Faji's ruling, identified in suit numbered FHC/L/CS/1431/2019, include Mr. Jai Bhagwan Gupta and his two sons, Vineet Gupta and Rachit Gupta.

Oginni, represented by his lawyer Yakubu Galadima, sought several reliefs, including a declaration of his directorship in the companies, entitlement to benefits, and an order for a comprehensive account of a government grant to one of the companies.

The defendants, represented by lawyer Festus Afeiyodion, contested the claims but failed to provide reasons for Oginni's removal, as required by CAMA. The Corporate Affairs Commission (CAC), the seventh defendant, did not contest the suit.

Justice Faji's ruling emphasized the importance of providing reasons for director removal, as stipulated by CAMA. He granted Oginni various financial compensations totaling N98.2 million and $325,000.00, covering directors' payments, vacation benefits, and annual bonuses.

However, the court declined Oginni's request for additional compensation, deeming it unnecessary given the granted reliefs.

Oginni detailed the history of his involvement in the companies, highlighting mismanagement and unlawful actions by the defendants. Legal actions were initiated, including petitions to the Economic and Financial Crimes Commission (EFCC) and engagement of legal representation to address fraudulent conduct.

In response to the judgment, Galadima commended it as sound and emphasized the lesson learned regarding caution when engaging with foreign partners to prevent takeovers of indigenous companies. He noted that the CAC had been directed to audit the companies, suggesting further actions against the defendants.

The verdict marks a significant victory for Oginni and underscores the importance of upholding legal rights and fair business practices in corporate governance. Isaac Oluwole Oginni for unlawfully removing him as a director from three companies he founded.

The companies at the center of the legal action, filed on November 19, 2021, are Bolawole Enterprises Nigeria Limited, Lesag Nigeria Limited, and Intermanagement Nigeria Limited.

In his judgment, Justice Ayokunle Faji declared the actions of the three Indians as a violation of Oginni's right to a fair hearing and the provisions outlined in section 262 of the Companies and Allied Matters Act (CAMA). He affirmed Oginni's continued status as director of his three companies.

The Indians affected by Justice Faji's ruling, identified in suit numbered FHC/L/CS/1431/2019, include Mr. Jai Bhagwan Gupta and his two sons, Vineet Gupta and Rachit Gupta.

Oginni, represented by his lawyer Yakubu Galadima, sought several reliefs, including a declaration of his directorship in the companies, entitlement to benefits, and an order for a comprehensive account of a government grant to one of the companies.

The defendants, represented by lawyer Festus Afeiyodion, contested the claims but failed to provide reasons for Oginni's removal, as required by CAMA. The Corporate Affairs Commission (CAC), the seventh defendant, did not contest the suit.

Justice Faji's ruling emphasized the importance of providing reasons for director removal, as stipulated by CAMA. He granted Oginni various financial compensations totaling N98.2 million and $325,000.00, covering directors' payments, vacation benefits, and annual bonuses.

However, the court declined Oginni's request for additional compensation, deeming it unnecessary given the granted reliefs.

Oginni detailed the history of his involvement in the companies, highlighting mismanagement and unlawful actions by the defendants. Legal actions were initiated, including petitions to the Economic and Financial Crimes Commission (EFCC) and engagement of legal representation to address fraudulent conduct.

In response to the judgment, Galadima commended it as sound and emphasized the lesson learned regarding caution when engaging with foreign partners to prevent takeovers of indigenous companies. He noted that the CAC had been directed to audit the companies, suggesting further actions against the defendants.

The verdict marks a significant victory for Oginni and underscores the importance of upholding legal rights and fair business practices in corporate governance.